[The_Duke_Of_Eli]

Where there is a demand, there will be a supply. Two bags that both cost 20$ to make, have little to say in what the consumer values it at. If a coach bags costs 20$ to make, but the consumer is willing to pay 500$ for it, that's what they'll sell it at. And as long as people are willing to pay that much, people will sell it that high. Although not represented in the 20$ vs. 500$ dollars is the branding. When you buy a coach bag, you pay for the branding. If there were two identical bags construction and appearance-wise, but one had a coach label, and the other didn't the coach would still sell at a higher price point.